ASIC chair James Shipton insists the regulator is concerned by the number of financial advisers leaving the industry and how COVID-19 could amplify the issue, as it is revealed almost 1000 left since the pandemic hit.

The ASIC Financial Adviser Register has dropped by 1488 advisers since the start of this year, according to Rainmaker analysis.

Since COVID-19 hit, in less than three months from 27 February 2020 to 21 May 2020, the number of registered advisers dropped by 916.

These numbers only show the drop in the total number of advisers registered. There have been new entrants during the same period, so the true number of advisers to leave in the industry is likely even higher.

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"This is a question that was confronting us before the pandemic and is being effected by the pandemic itself," Shipton said.

"It's always been our desire to have a healthy, functioning and effective financial advice industry in this country."

He said that ASIC wants to work with the advice industry to achieve positive outcomes for consumers.

"We want to work with industry, we want to work with policy makers, we want to work with the government to make sure that is the ultimate result," Shipton said.

"But we also need to ensure it is of the highest quality and highest standard - that is absolutely crucial.

He said the regulator wants to see the financial advice industry pull through COVID-19.

"We've adapted and responded to the immediate challenges by providing some relief to financial advisers so Australians can get access for some of the critical questions that are now before them," Shipton said.

"I think as we work through and endure, the industry, policy makers and regulators need to work together to see how we can shape the financial advice sector to future proof it so it can be beneficial to Australians and the broader economy.

Hi As a largely traditional stockbroker I give ongoing advice to clients about the state of the stock market and quality of the shares they hold using research and under standing the requirements of the client. This advice is not fees under management income and often do so few trades that you wonder why you come to work. The pressures of further examination study without grandfathered solutions in my opinion will not benefit the clients of stockbrokers.

JOHN WHITE | 22 MAY 2020 7.57AM

What a joke. ASIC by their over complication of regulations will have caused many more advisers to leave the industry than the Covid 19 has. For years it has been push push push by ASIC to make the industry very difficult to survive in by unreasonable regulation.

By the way I am not a financial planner having left the industry 4 years ago

TOM TULLY | 22 MAY 2020 8.06AM

Make that 917

PETER MITCHELL | 25 MAY 2020 8.16AM

I'm leaving the industry. I love helping my clients and really love what I do. I know that my clients respect me.

ASIC have over complicated the industry. I can no longer cope with the stress and put simply, my health and well being is more important than any clients. I know that many more advisers will be also be leaving.

Australians will be worse off when there are fewer advisers.

ROBERT JONES | 25 MAY 2020 10.28AM

Thank you lawyers and bureaucrats for introducing a plethora of rigid policies and unworkable standards which have pushed many good advisers out of the industry to the detriment of the Australian public. What did you think would happen? Way too much red tape and confusing Regulation, instead of a focus on quality, digestible advice for the "man in the street". Affordable advice for all Australians? Laughable.

KEN BLOOMFIELD | 25 MAY 2020 10.56AM

It just blows me away that beauracrats just won't admit that they have played a part in creating this mess. Maybe it is time to allow Advisers to take over the asylum and self -regulate? Some common sense might be alowed to be introduced. And before you say we were given the opportunity before - wrong! It was the product manufacturers that were asked to bring themselves into line not those of us at the coalface.

ALEX VAGLIVIELLO | 27 MAY 2020 8.57PM

If ASIC are really interested in keeping a 'healthy, functioning and effective financial advice industry' they should look at winding back some of the multiple layers of compliance and complexity they have introduced at no benefit to the consumer. Yes we need to protect the consumer but there is no need to add multiple layers of complexity to a process when the first layer offers enough protection. Also maybe with all the different industry bodies we need to be a member of or report to could come under one name/umbrella and reduce compliance and costs that way. And instead of us all belonging to an licensee where costs are going through the roof (60k+ pa before we even see clients) Maybe we can ditch the licensee and work through a governing body to again reduce our costs, compliance and reporting.

Consult with some advisers and clients of advisers to get a better feel for client expectation and reality. Clients dont want a 70+ page SOA that repeats itself and confuses them.

Stop making things harder through solicitors and red tape and start thinking outside the box of how we can advance this profession in a positive manner moving forward.

RYAN OLIVER | 25 MAY 2020 12.43PM

It's a bit late to be concerned! If they weren"t so heavy handed in the complexity of regulation and compliance, I for one would not have retired. Add to that the fact that at 69 I am far too old to go back and study a degree. Get Governments involved in anything and they will surely stuff it up. I know that my clients will be well looked after but hate to think how much some of their fees may rise thanks to ASIC.

TONY ARLIDGE | 25 MAY 2020 1.45PM

With an economy now in a recession phase in many industries and job losses at an all time high not seen since the great depression, with a mortgage property bubble about to burst hurting millions, to know that government policy and over regulation with an overall incoherent approach to the financial services industry causes yet another 916 advisers to leave on top of the 5000 already is a very sad indictment of any government, yet alone one that purports to stand for small business owners as many advisers are. Where is the leadership that is not trible as so far it seems clear that policy and regulation so far in this sector has been. If not remedied fast, over 100,000 business owners, their employees and support staff along with licencees will go to the wall. This will become an election issue very quickly.

HEAD OF AUSTRALIAN EQUITIESABERDEEN STANDARD INVESTMENTS AUSTRALIA LIMITED

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